Estate Agent HIP offers and terms

courtjester

What's in your contract ?

I'm interested to know how estate agents are going about offering HIPS.

What price are different agents passing on to customers (including VAT) to prepare a full HIP?

Are estate agents charging upfront /offering deferred payment terms (pay on completion) or even offering 'free' HIPS?

As regards the so-called 'free' option, the actual cost will invariably be buried somewhere in the contract terms and will doubtless be charged in the event that the sale does not proceed or the property is withdrawn from that agent - what is the general level of this 'free' cost included in the contract?

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I'm particularly interested in London agents, but information about agents approach to cost and charging for HIPS around the country would also be welcome.

Doozergirl

Worcestershire agent charging £400 for a HIP with payment deferred until completion unless the vendor withdraws the property from the market.

Worcestershire agent including HIP in their fee. Negotiated 1.25% with HIP, 1% without. I'm not sure what the cost would have been if a vendor withdraws.

SunnyBrighton_2

I've just had the HIP (£414.76) done on my house which is going on the market as I type!
I've had quotes from agents who are saying the HIP is -

- included in the fees (1.5%) (hmm, bit pricey then!)
- nothing to do with us, find one yourself (fees 1.5% down to 1.25%)
(don't like your attitude, goodbye)
- not our remit, use your own solicitor and whoever they recommend for the EPCert (1%) (I did this!)
- ah, we know 2 companies which do a HIP (Approx £322 each) and one solicitor who charges £235 if you instruct them (then as you say, they'll up their fees to cover it), or £322 if you have your own solicitor. (Agent fees 1%) (good to have a choice, but the fastest was the one I chose above)

The agent who includes the HIP will keep it if you withdraw, and should you go on the market again with another agent, you'll have to get another HIP.

If you commission it and pay for it, then it's yours no matter what you do. (Wiping the dog's bottom would be the only use I can think of for it)

SunnyBrighton_2

Sorry, should have said all prices I mentioned include VAT.
Also, no agent would market it without the HIP in place (ie paid for with printed EPCert report).

MissMotivation

We're charging £350 plus VAT on deferred payment scheme.

After some research it seems agents are ranging from offering a "free" HIP but with a selling fee of 2%! to £600 plus VAT.......this is in Leicester

david29dpo

All of the agents i deal with pass it to me, they want nothing to do with it and dont want to make money from it. Odd but true!

evosy1978

david29

when you say pass it to you what do they pass. the epc or the whole hip. what kind of prices are you charging.

thaqnks

dolce_vita

The behavoiur and therefore the contracts of estate agents changes according to the situation.

Whather there is a boom or a bust.

It just happens that while this bust is playing out HIPs are involved and they have got something to either blame something on or try to make a bit more money.

HIPs are a red herring that the VIs are trying to blame things on.

The game is up.

They know it and I know it.

Do you?

courtjester

MissMotivation wrote: »

We're charging £350 plus VAT on deferred payment scheme.

After some research it seems agents are ranging from offering a "free" HIP but with a selling fee of 2%! to £600 plus VAT.......this is in Leicester

MissM, is your firm making it a term of the agency contract that the client has to pay for the HIP if the property doesn't sell? As part of the contract or under a separate agreement?

Is the HIP 'owned' by the customer or the agency? What happens at the end of the sole agency period if the customer decides to appoint a different agent - can they take the HIP with them?

What is the approach of the agents offering the free (+2% commission) HIP - presumably they expect the client to pay for the HIP if they move on without a sale - in which case, is the cost detailed (buried) in fine print in the agents contract?

Many thanks.

MissMotivation

courtjester wrote: »

MissM, is your firm making it a term of the agency contract that the client has to pay for the HIP if the property doesn't sell? As part of the contract or under a separate agreement?

Is the HIP 'owned' by the customer or the agency? What happens at the end of the sole agency period if the customer decides to appoint a different agent - can they take the HIP with them?

What is the approach of the agents offering the free (+2% commission) HIP - presumably they expect the client to pay for the HIP if they move on without a sale - in which case, is the cost detailed (buried) in fine print in the agents contract?

Many thanks.

The client will have to pay for the HIP if at any time they take the property off the market with us, this is part of our standard marketing agreement.

The HIP is "owned" by the company for the term of the agreement, once that agreement is terminated and the HIP is paid for by the client it then belongs to them.....to do with it whatever they wish to.

Can't answer your last question as I'm still trying to find out, the agents I spoke to were very cagey about this question.

IMO agents that are offering a "free" HIP are treading on thin ice, they way I see it it is not free if the fee is bumped up to compensate for the cost of the HIP to the agent OR if the client has to pay for the HIP if property is taken off the market. Im just waiting to see what their contracts state.

courtjester

It's a marketing ploy sure, but I'm interested to know if some agents are incorporating a premium cost in the 'buried' fine print on charges than you might expect to pay upfront - say imposing a £500 charge for the HIP instead of a more reasonable £350-£400 if the client moves on to another agent or withdraws from sale.

thanks